REAL Broker Stock Awards Fully Explained (2024)
One thing I LOVE about REAL Broker is that they are a publicly traded company which means as a real estate agent, you can have ownership IN YOUR COMPANY!
Not only can you purchase stock in the company, but REAL actually WANTS YOU to own stock in the company and in fact have 4 different ways that they GIVE FREE STOCKS to their agents.
This is a pretty major departure from most franchise-based real estate companies which are often owned by investors, not the agents!
REAL Broker’s stock is listed on multiple exchanges and it can get a little confusing at teams as to which one you should buy.
So in this article, I want to explain the REAL Broker, LLC stock symbols splits, prices, and their agent stock program and why it is one of my favorite parts about being a real estate agent at REAL.
REAL Broker, LLC Stock Explained
REAL Broker is publicly traded as “The Real Brokerage Inc.” and traded on the NASDAQ with the ticker symbol “REAX”.
REAL Broker Stock Incentive Programs Explained
REAL Broker, LLC not only allows their real estate agents to own a portion of the company, but they want their agents to have ownership in the company so they can share in its success. In fact, REAL has 4 different incentive programs in which they give their real estate agents free stock in the company for hitting certain milestones in the agent’s businesses.
1. Agent stock purchase
REAL offers its agents an option to purchase stock directly out of their commission checks. If an agent chooses to enroll in this program, real will reward them with up to 50% free stocks in addition to their purchase.
Before an agent caps, they can commit 5% of their commission check to purchase stock and receive 25% additional shares for free. After an agent caps, they can then commit 10% of their commission check, up to $15k a year, and receive 50% additional stocks for free.
So if you have capped and purchased $1,000 of stocks out of your commission, REAL will give you an additional $500 worth of stock for free.
2. Capping
Real broker has an 85/15 commission split until you have paid REAL your pull $12,000 a year “cap”. Upon capping, REAL will reward you with free shares in the company. The amount of shares you receive is determined by the number of agents currently within the company reduces as the company grows larger. This rewards the agents who get into the company early on. Currently, at about 2,500 agents, you will receive 1,000 shares in the company when you cap.
These shares have a 3-year vesting period and require you to remain in good standing with the company during those 3 years.
3. Agent Attraction
Instead of growing the company through paying for advertisements, REAL has instead decided to reward the agents who are most influential in attracting new agents and growing the company. This is a similar model Keller Williams Realty and eXp Realty have used to grow their companies.
For attracting an agent to REAL, the sponsoring agent receives up to $4,000 a year in “revenue share” as well as rewarded with stock in the company. Similar to the stock you receive for capping, the reward for attracting agents is on a sliding scale and diminishes as the company grows and the stock value increases. Currently, you will receive 500 shares in the company for every agent who puts you down as their sponser.
Similar to the stock you receive for capping, these shares have a 3 year vesting period and both you and the agent you attracted have to be in good standing with the company during those 3 years.
4. Elite Agent Stock Award
REAL has an Elite Agent Award it gives to its real estate agents who have exceptional sales volume. To reach Elite status, agents must meet one of the following production benchmarks:
○ Pay the full annual cap AND generate $6k in post cap transaction fees OR
○ A minimum GCI of $500,000 AND at least 10 completed transactions
For achieving Elite Agent status, REAL rewards the agents with $16,000 of stock in the company. This stock does have a 3 year vesting period as well.
What Is Shareworks
Shareworks is a platform run by Morgan Stanley and is what REAL Broker uses to manage the stocks it gives to its agents. You will have an active Shareworks account to have access to your gifted stocks.
Incentivizing A Culture Of Sharing
As an agent with REAL Broker, receiving free stock in the company is great and is an additional stream of income for me but what I appreciate most is the impact it has on the culture of the company.
Life is all about incentives and disincentives. Because most of us own stock in the company and want to see that stock rise in value, we are all incentivized to help each other out and share out knowledge and experience. I have never in my life owned a stock which my actions could have a direct impact on the value of that stock.
This is very different than a typical local brokerage which instead of focusing on competition and does not reward agents for sharing or helping each other. If I am at a small brokerage, there is no incentive to giving away your best strategies or tips to other agents in your brokerage, in fact, it could actually hurt your business.
But because REAL is a national company and your broker covers the entire state, not just your specific city, it makes it far easier for agents to share their best strategies and by doing so, they are ultimately helping the stock price increase and their investment in the company increase along with it.
FAQ
What is REAL Broker’s stock symbol?
REAL Broker’s stock symbol is REAX and is publicly listed on the NASDAQ.
Is REAL Broker Profitable?
Yes, REAL Broker achieved EBITDA profitability in Q2 2023 and continued to be profitable into Q3 2023 and Q1 2024. See REAL Broker’s quarterly financial reports here.
Check out these other REAL Broker articles
Real Broker Revenue Share Explained
REAL Broker Fees, caps and splits explained
REAL Broker Stock Awards Explained
Teams At REAL Broker Explained
REAL Broker VS eXp In-Depth Comparison